Real Estate (Tables)

3 Months Ended

Mar. 31, 2019

Investments in real estate properties consisted of the following (dollars and square feet in thousands):

	Square Feet				Number of Buildings
	March 31,		December 31,		March 31,		December 31,		March 31,		December 31,
	2019		2018		2019		2018		2019		2018
Operating properties:
Buildings and improvements		351,159		354,762		1,869		1,858	$	22,560,379	$	22,587,267
Improved land										8,106,848		8,044,888
Development portfolio, including land costs:
Prestabilized		7,562		8,709		34		30		623,569		828,064
Properties under development		25,899		27,715		65		70		1,316,068		1,314,737
Land (1)										1,143,294		1,192,220
Other real estate investments (2)										645,540		619,811
Total investments in real estate properties										34,395,698		34,586,987
Less accumulated depreciation										4,868,611		4,656,680
Net investments in real estate properties									$	29,527,087	$	29,930,307

(1)	At March 31, 2019 and December 31, 2018, our land is comprised of 4,582 and 4,929 acres, respectively.

(2)

Included in other real estate investments were: (i) land parcels that are ground leased to third parties; (ii) non-logistics real estate; (iii) our corporate headquarters; (iv) earnest money deposits associated with potential acquisitions; (v) costs related to future development projects, including purchase options on land; and (vi) infrastructure costs related to projects we are developing on behalf of others.

Summary of Properties Acquired

The following table summarizes our real estate acquisition activity (dollars and square feet in thousands):

	Three Months Ended March 31,
	2019		2018
Number of operating properties (1)		12		-
Square feet (1)		967		-
Acquisition value of net investments in real estate properties (2)	$	312,252	$	134,941

(1)	During the three months ended March 31, 2018, we did not acquire operating properties.

(2)	Value includes the acquisition of 188 and 379 acres of land during the three months ended March 31, 2019 and 2018, respectively.

Number Of Properties Disposed

The following table summarizes our gains on real estate transactions, net (dollars and square feet in thousands):

	Three Months Ended March 31,
	2019		2018
Contributions to unconsolidated entities
Number of properties		19		8
Square feet		8,149		3,078
Net proceeds (1) (2)	$	744,165	$	539,822
Gains on contributions, net (1) (2)	$	37,138	$	167,726
Dispositions to third parties
Number of properties		2		11
Square feet		670		1,303
Net proceeds (1)	$	52,024	$	87,981
Gains on dispositions, net (1)	$	16,048	$	27,385

Total gains on contributions and dispositions, net	$	53,186	$	195,111
Gain on partial redemption of investment in a co-investment venture (3)		135,022		-
Total gains on real estate transactions, net	$	188,208	$	195,111

(1)	Includes the contribution and disposition of land parcels.

(2)

In January 2019, we formed Prologis Brazil Logistics Venture (“PBLV”), a Brazilian unconsolidated co-investment venture, with one partner. We contributed an initial portfolio of real estate properties to PBLV consisting of 14 operating properties totaling 6.9 million square feet and 371 acres of land. We received cash proceeds and units for our 20% equity interest.

(3)	See Note 4 for more information on this transaction.

Summary of Minimum Lease Payments Due from Our Customers on Leases

The following table summarizes the minimum lease payments due from our customers on leases with lease periods greater than one year for space in our operating properties, prestabilized development properties and leases of land subject to ground leases at March 31, 2019 (in thousands):

2019	$	1,518,699
2020		1,950,122
2021		1,679,801
2022		1,360,816
2023		1,076,401
Thereafter		3,550,169
Total	$	11,136,008

Fixed, Future Minimum Rental Payments, Excluding Variable Costs Under Non-Cancelable Operating Leases

The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by our incremental borrowing rates to calculate the lease liabilities for our operating leases in which we are the lessee (in thousands):

	March 31, 2019		December 31, 2018
2019	$	32,091	$	38,769
2020		42,062		38,267
2021		38,032		34,307
2022		36,057		32,312
2023		31,029		30,180
Thereafter		681,381		670,147
Total undiscounted rental payments		860,652	$	843,982
Less imputed interest		468,311
Total lease liabilities	$	392,341